Technology and Organizational Behavior Issues
boricuaaoc
SCMSustainability1.pdf
www.hbr.org
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Is Your Supply Chain Sustainable?
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Is Your Supply Chain Sustainable?
harvard business review • october 2010 page 1
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Managers looking to improve the social and environmental impacts of their supply chains say they feel blocked by forces beyond their control.
Members of the HBR Advisory Council (a group of readers we periodically turn to for in- sights) told us that efforts to boost the sustain- ability of supply chains are hampered by cost, complexity, lack of information and know-how, and the sense that customers and investors are not deeply concerned about the issue. Of 335 respondents, 79% have direct or indirect mana- gerial oversight of their company’s supply chain.
Those surveyed focused mainly on financial factors. This may be largely a response to the weak economy. It also shows that companies aren’t convinced by academics, consultants, and others who argue that improving sustain- ability won’t necessarily cut into profits, and may in fact help the bottom line.
How confident are you that you understand the sustainability performance of your suppliers?
Here’s how our respondents answered:
EXTREMELY OR VERY CONFIDENT...
IN FIRST IER SUPPLIERS
IN SECON TIER SUPPLIERS
IN THIR TIER SUPPLIERS
IN INTERNAL SUPPLIERS
This document is authorized for use only by James Young ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.
Is Your Supply Chain Sustainable?
•
•
•
S
POTLIGHT
: R
ADICALLY
R
EINVENT
Y
OUR
S
UPPLY
C
HAIN
harvard business review • october 2010 page 2
Which sustainability performance issues most concern your company?
What hinders sustainability innovation in your supply chain?
54%
of those surveyed say that their company is extremely or very concerned about its sus- tainability performance. At the same time, only
40%
believe that their external stakehold- ers are extremely or very concerned.
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FREQUENCY OF RESPONSE
LOW HIGH
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Focused on more- pressing priorities
Limited resources
Uncertain ROI
Insufficient supplier understanding and buy-in
All cost and financial concerns
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FREQUENCY OF RESPONSE LOW HIGH
H IG H
Lack of interest from stakeholders (employees and clients)
Current economic realities; the need to run lean
Regulatory compliance
No way to measure impact
All cost and financial concerns
Managing the life cycle and cumulative environmental impacts
Potential risks for brand and reputation
This document is authorized for use only by James Young ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.
